- This increase shows that attention is returning to the chain.
- Despite the rise in TVL, BNB price could fall to $580.
For the first time since May 2, BNB Chain’s DEX trading volume exceeded $700 million. This is based on Artemis data.
For context, DEX is short for Decentralized Exchange. Artemis, on the other hand, is a crypto metrics analysis platform.
Has a new race started?
Until now, the DEX volume on the blockchain has been downhill From mid-April. As such, its value has not been able to reach or exceed $1 billion since that period.
However, the recent increase means an increase in user activity on the BNB chain.For those unfamiliar, Binance [BNB] It is a cryptocurrency used for transactions on the network.
Therefore, low DEX volume could mean that on-chain transaction activity is decreasing.
Source: Artemis
A high DEX volume suggests increasing participation in the network, which indicates an increase in demand for the coin.
At the time of writing, BNB price was $593.70, up just 1.23% in the past 24 hours. If on-chain trading volume continues to increase, price volatility may improve.
However, this coin has not seen significant buying pressure recently. If that happens, it could return to $620.
In terms of on-chain volume, AMBCrypto has observed a decline since May 10th.
BNB movement could be wrong
Increasing volume and rising prices indicate that the bull market may continue. However, BNB’s recent price increase and declining trading volume suggest that: weakness In an upward trend.
Therefore, BNB may have witnessed a false breakout. If this turns out to be the case, the cryptocurrency could next fall to the support at $580.
Source: Santiment
Another area AMBCrypto analyzed was Total Value Locked (TVL). TLV is an indicator of network health. This indicator allows you to know whether market participants are staking or locking assets on the protocol.
If TVL increases, it is a sign of perceived trust in the project. In this case, the value of the locked asset must have increased in anticipation of a better yield.
However, a decrease in TVL suggests that assets are being taken out, and participants do not believe that the protocols involved can generate good rewards.
according to Defilama, Binance Smart Chain’s TVL was $61.2 billion. After taking a deep dive into the underlying protocols, we’ve seen a notable increase over the past week.
Source: Defilama
Therefore, this overall increase means that participants have confidence in the health and security of the chain. However, this indicator remains well below the peak recorded in 2021.
Realistic or not, BNB’s market capitalization in BTC terms is as follows:
If TVL continues to rise, the price of BNB may follow suit. However, the $1,000 prediction could only happen if the index rises above $10 billion in the first place.
Otherwise, the prediction may not come true. However, it is important to remember that other factors besides this can affect the price.
